A handful of companies on the Fortune 500

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A handful of companies on the Fortune 500 list are over 100 years old, which is rare. What organizational characteristics do you think might explain 100-year longevity? (2.5 points)

Chapter 2:

1. How might the top management of an organization use SWOT analysis or scenario planning to set goals and strategy? Explain and give examples from your experience.

Chapter 3:

1. Describe the virtual network structure. What are the advantages and disadvantages of using this structure compared to performing all activities in-house within an organization?

Chapter 4:

When would an organization consider using a matrix structure? How does the global matrix differ from the domestic matrix structure described in Chapter 3?

 

Sample Solution

  • Strong corporate culture: A strong corporate culture provides a sense of identity and purpose for employees, which can help to create a sense of loyalty and commitment. This can be important for weathering tough times and staying focused on the long-term goals of the organization.
  • Adaptability: The ability to adapt to change is essential for any organization that wants to survive for 100 years. This means being willing to change strategies, products, or services as needed. It also means being able to embrace new technologies and ways of doing things.
  • Excellent leadership: Strong leadership is essential for any organization, but it is especially important for organizations that want to survive for 100 years. Leaders need to be able to set a clear vision for the future, inspire and motivate employees, and make tough decisions.
  • Financial stability: Financial stability is important for any organization, but it is especially important for organizations that want to survive for 100 years. This means having a strong balance sheet and a healthy cash flow. It also means being able to weather economic downturns.
  • Commitment to quality: A commitment to quality is essential for any organization that wants to build a reputation for excellence. This means investing in quality control, training employees, and using the best materials and processes.
  • Focus on the customer: A focus on the customer is essential for any organization that wants to stay competitive. This means understanding the needs of customers, providing excellent customer service, and continuously innovating to meet those needs.

Here are some examples of companies that have been in business for over 100 years:

  • Johnson & Johnson: This healthcare company was founded in 1886.
  • Coca-Cola: This beverage company was founded in 1886.
  • Walmart: This retail company was founded in 1962.
  • 3M: This manufacturing company was founded in 1902.
  • General Electric: This conglomerate was founded in 1892.

These companies have all demonstrated the ability to adapt to change, invest in quality, and focus on the customer. They have also been fortunate to have strong leadership and financial stability. These are all factors that have contributed to their longevity.

Chapter 2:

SWOT analysis and scenario planning are two tools that top management can use to set goals and strategy. SWOT analysis is a tool that helps organizations identify their strengths, weaknesses, opportunities, and threats. Scenario planning is a tool that helps organizations think about possible future events and how they might impact the organization.

Here are some examples of how top management might use SWOT analysis or scenario planning to set goals and strategy:

  • A company might use SWOT analysis to identify its strengths in research and development, and then set a goal of becoming a leader in new product development.
  • A company might use scenario planning to think about the impact of a potential recession on its business, and then set a strategy to mitigate the risks.

I have no personal experience with using these tools, but I have read about them and seen how they have been used by other organizations. I think they are both valuable tools that can help organizations make better decisions about their future.

Chapter 3:

A virtual network structure is a type of organizational structure in which different organizations work together to achieve a common goal. This can be done through a variety of arrangements, such as outsourcing, joint ventures, or strategic alliances.

There are several advantages to using a virtual network structure. First, it can help organizations to save money by outsourcing non-core activities. Second, it can help organizations to access new skills and expertise. Third, it can help organizations to be more flexible and adaptable to change.

However, there are also some disadvantages to using a virtual network structure. First, it can be difficult to manage and coordinate activities between different organizations. Second, it can be difficult to maintain confidentiality and security. Third, it can be difficult to build trust and relationships between different organizations.

Here is a table that summarizes the advantages and disadvantages of using a virtual network structure:

Advantages Disadvantages
Can save money Can be difficult to manage
Can access new skills Can be difficult to coordinate
Can be flexible Can be difficult to maintain confidentiality
Can build relationships Can be difficult to build trust

Ultimately, the decision of whether or not to use a virtual network structure depends on the specific circumstances of the organization. If the organization is looking to save money or access new skills, then a virtual network structure may be a good option. However, if the organization is looking for a high level of control or confidentiality, then a virtual network structure may not be the best option.

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